STAND. COM. REP. NO. 3623

Honolulu, Hawaii

RE: H.B. No. 1972

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1972, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TAXATION,"

begs leave to report as follows:

The purpose and intent of this measure is to provide tax relief to family caregivers in the State.

More specifically, this measure:

(1) Establishes a family caregiver tax credit for nonpaid family caregivers;

(2) Requires the Department of Taxation to submit annual reports to the Legislature; and

(3) Appropriates moneys to develop and implement the tax credit program.

Your Committee received written comments in support of this measure from the Disability and Communication Access Board, Hawaii State Commission on the Status of Women, Hawaii State Council on Developmental Disabilities, Policy Advisory Board for Elder Affairs, AARP Hawaii, Catholic Charities Hawaii, Chamber of Commerce Hawaii, Hawaii Children's Action Network Speaks!, Hawaii Public Health Institute, LeadingAge Pacific West, and thirteen individuals.

Your Committee received written comments on this measure from the Department of Taxation and Tax Foundation of Hawaii.

Your Committee finds that family caregivers play a critical role in Hawaii's long-term care system, providing substantial unpaid support that enables older adults and individuals with disabilities to remain in their homes and communities. Family caregivers assist with a wide range of daily and medical tasks, often while managing employment and other responsibilities. Your Committee also finds that these caregivers face considerable physical, emotional, and financial challenges, with many caregivers incurring significant out-of-pocket expenses related to caregiving. Your Committee further finds that the demands on family caregivers are not isolated family issues, and that supportive measures are necessary to sustain and strengthen Hawaii's caregiving network.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1972, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair